Facilitating Resource Efficiency through Regulatory Reform for Sustainable Consumption in the FMCG Sector

This conceptual policy paper with a specific technology case study underlines the importance of using scientific evidence in strengthening regulation to promote resource efficiency for sustainable consumption in the Fast-Moving Consumer Goods (FMCG) sector in India. It explores how science-based innovations, facilitated through regulatory reform and informed consumer engagement, can help improve material use efficiency, thereby decoupling economic growth from resource depletion and negative environmental impacts. The discussion situates this need within the current market dynamics, highlighting rising consumer awareness, persistent intent–action gaps in sustainable consumption, and evolving business responses ranging from technology-driven innovation to choice influencing and choice editing. Using the example of one of the simplest and widely used FMCG products - the soap bar, it illustrates how reducing Total Fatty Matter in soap bar (TFM is derived from palm oil) through alternative structurants can optimise palm oil use without compromising its performance. The paper thereby underlines that efficient use of TFM in soap bars can contribute towards addressing the associated risk of deforestation, and makes a case for the national standard to be accordingly refined. Building on these insights, the paper outlines an integrated analytical approach that combines business reform strategies supported by science-based research and innovation, leadership thinking, and policy engagement, with enabling regulatory frameworks and consumer education.